India, EU poised for historic trade, defence breakthrough

New Delhi: An announcement on the conclusion of talks on an ambitious free trade deal and finalisation of a strategic defence pact as well as a mobility framework are set to be the main deliverables at the India-European Union summit talks on Tuesday.

Prime Minister Narendra Modi will host European Commission President Ursula von der Leyen and European Council President Antonio Costa at the summit that is expected to produce a broader vision by the two sides to navigate the geopolitical flux triggered by Washington’s policies on trade and security. Costa and von der Leyen graced the 77th Republic Day celebrations at the Kartavya Path here as chief guests. “A successful India makes the world more stable, prosperous and secure. And we all benefit,” Von der Leyen said on Monday. Von der Leyen also described the participation of an EU military contingent at the Republic Day parade as a powerful symbol of the deepening security cooperation between the two sides. “It will culminate tomorrow in the signature of our Security and Defence Partnership,” she said, confirming the outcome. EU’s Commissioner for Trade and Economic Security Maros Sefcovic, after witnessing the Republic Day ceremony, signalled that the India-EU free trade agreement will be firmed up on Tuesday. “Being invited as a guest for India’s Republic Day is a profound honour. There could be no more fitting moment to reaffirm our partnership - and to strengthen it further through the conclusion of an ambitious EU-India FTA,” he said on social media. Von der Leyen last week said India and the European Union are on the cusp of a “historic trade agreement” that would create a market comprising two billion people, accounting for almost a quarter of the global GDP. The FTA is expected to bring a qualitative change in deepening the overall bilateral ties in a range of sectors. The broad focus of the summit will be on trade, defence and security, climate change, critical technologies and strengthening the rules-based global order. The two sides are set to unveil a defence framework pact and a strategic agenda at the summit. India and the European Union have been strategic partners since 2004. The proposed Security and Defence Partnership (SDP) will facilitate deeper defence and security cooperation between the two sides, officials said. The SDP will bring interoperability in the defence domain and will open up avenues for Indian firms to participate in the EU’s SAFE (Security Action for Europe) programme. They are also likely to deliberate on the pressing global challenges, including the Russia-Ukraine war. While the two sides don’t see eye-to-eye on everything, they do share a core set of interests which include having a stable international order, European officials said last week. For the financial year 2024-25, India’s total trade in goods with the EU was worth about USD 136 billion, with exports around USD 76 billion and importsat USD 60 billion.